Selling agricultural land from autumn to spring: how to match legal and farming timetables

Charlotte Boyes explains ways to ensure that both the buyer and seller are protected

Charlotte Boyes at Wilkin Chapman Solicitors in East Yorkshire, sets out the legal process and pitfalls for selling agricultural land from autumn to spring.

When it comes to buying and selling agricultural land there are many issues that can arise. One of these issues is the time of year and indeed the weather when the transaction is taking place.

The weather and time of year have a major impact on when crops can be planted and harvested, and it is often difficult to ensure that legal and farming timetables match up. However, there are ways to ensure that both the buyer and seller are protected when this situation arises.

When the land is currently bare, but the conditions are optimum for sowing, early access rights can be granted to the buyer of the property. Early access rights allow the buyer to begin cultivations for the next year's crop before the purchase has completed.

Early access to sow crops before the sale is completed can smooth the process for farmers in Yorkshire

This may sound straightforward, but matters can easily become complicated if the documents are not drafted correctly. For instance, protection needs to be given to the buyer to ensure the money they have put into buying and sowing the seed is protected and that they will have adequate rights or, potentially, compensation if the sale does not complete.

In the reverse, protection also needs to be given to the seller to ensure they are able to get the buyer off the land should the sale fall through.

If completion is due to happen before the seller has had the opportunity to remove the growing crops holdover provisions can be inserted into the contract.

Holdover arrangements will vary according to the type of farm, crops grown and the geographical location. The rights can include rights to harvest growing crops, to store crops, remove them at a later date and rights of access.

This needs careful consideration to ensure that the buyer gains vacant possession of the land after the holdover period ends and that the land is left in an acceptable condition.

Holdover can also cause issues to the new owner of the land as consideration also needs to be given to costs incurred such as for electricity or water to ensure the buyer is not paying fees for the seller’s benefit.

If you would like further advice on the above please give Charlotte Boyes a call on 01482 398 829, email [email protected] or visit www.wilkinchapman.co.uk/sectors/agriculture-food